The way I understand it one is able to take up 1 NPL for 1 share at R8.50 per share up until the 4th Dec after which time they would expire if one does not sell. The "election" was only for yesterday until 5pm at a take up value of 4c, so I'm confused what this actually means. Does this mean they have changed the R8.50 to 4c?
Rights offer of 51.5017 new shares for every 100 held @ a takeup price of 850cps. You can either exercise your rights indicated in your account to these shares, sell them in the market or let them lapse. Since the current market price of 820cps is below the rights offer price, the rights are trading at a nominal value. Should you decide to partake in the offer, you can rather buy them in the market at the lower price.
Thanks topgun. That is how I understand it all. Never have had a message before saying "URGENT! - There is a open election on a product in your Portfolio." Sure, I agree that if one wanted more SOV, rather than excercising the rights at 850, it would make sense to buy now at the going rate of 820. The NPL holding I have would be stupid to sell at 4c because the brokerage would be more than the amount I would get from the sale. So sadly, better to let them expire! So am afraid still don't understand the "election" at this stage with a take up value of 4c but then perhaps I'm just not getting it!?